True or False

Under the conventional retail inventory method net markups and net markdowns are both used to determine the cost to retail percentage.

When writing down the inventory to market value the direct method reports a loss as a separate line item on the income statement.

When following U.S. GAAP, the market value of inventory is always equal to the net realizable value.

Dollarvalue LIFO computes inventory on a pool of inventory on the basis of units.

If costs are declining, using LIFO will result in lower cost of goods sold and a higher net income as compared to FIFO and movingaverage methods.

The firstin, firstout inventory method assigns the most recent costs to the cost of goods sold.

Purchase returns and purchase discounts are added to purchases to calculate net purchases.

When goods are shipped f.o.b. shipping point, title passes when the goods reach the buyer's dock.

LIFO Reserve = FIFO Inventory Balance LIFO Inventory Balance.

If the LIFO Reserve increases during the year, Cost of Goods Sold will higher under LIFO than FIFO.